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Crypto DeFi Digest

Crypto DeFi Digest

FIGURE: PEPE CROSSING BRIDGES TO EXPLORE ALTERNATE LAYER 1S / LAYER 2S Although ETH remains the dominant Layer 1 for most on-chain activity, alternate Layer 1s have demonstrated product-market fit throughout the bull market run of ‘20/’21. Solana ($SOL) emerged as the ‘high-throughput chain’ focused...

Bridging 101

A Basic Walkthrough of Leverage Creation in DeFi

CORRECTION: IN THE FIRST DISTRIBUTION OF ‘DEFI DIGEST 14: A REFLECTION ON LIQUIDITY DYNAMICS THROUGH THE CONTAGION & GHO STABLECOIN’, WE INCORRECTLY REFERENCED VOYAGER INSTEAD OF CELSIUS AS HAVING A 1.2B HOLE IN ITS BALANCE SHEET. THE AMOUNT LENT TO 3AC BY VOYAGER WAS $350M IN USDC AND 15,250 IN...

A Reflection on Liquidity Dynamics Through the Contagion and GHO Stablecoin

FIGURE: $GHO LAUNCHING AMIDST THE BLOWUPS AROUND IT Seeing the CeFi realm blowing up around us, it is perhaps pertinent to reflect and hammer the lessons into our collective crypto consciousness. Drawing from CeFi, DeFi and Everything in Between, it is clear now that Celsius, BlockFi, and Voyager Digital function...

Airdrops

FIGURE: PEPE FARMING AIRDROPS TO SAVE HIS REKT PORTFOLIO _It's a Bird... It's a Plane... It's Superman an Airdrop!_ Everyone in crypto has heard of airdrops. Anyone who’s anyone, however, has actually received them. Upon receipt of a highly anticipated airdrop, the pang of dopamine from the financial implications and...

CeFi, DeFi, and Everything In Between

FIGURE: 3AC’S CONTAGION AFFECTING CEFI, DEFI, AND CEDEFI Over the past two weeks, we have seen the bear markets bringing out the worst in digital asset markets. Rumors of insolvency flew rampant in the face of volatility, affecting behemoths that were previously deemed ‘too sophisticated/large to fail.’ Celsius, which we...

Delta Neutrality I

FIGURE: FARMER PEPE JADED FROM BEING OVEREXPOSED TO TERRA WHILST SIMULTANEOUSLY RUGGED BY MILADIES, AS HE CONTEMPLATES HURLING IN HIS LAST BAG OF SEEDS TO  ONE MORE FARM Source: Fundstrat Fellow DeFi Enthusiasts, We hope this week’s  DeFi Digest finds you well. Evidently, these market (weather) conditions have shown to...

Closing Thoughts on Algo Stables

FIGURE: GCR, GALOIS CAPITAL, 0XHAMZ, FREDDIE RAYNOLDS & CO. EMERGING VICTORIOUS AGAINST TERRA Source: Fundstrat CLOSING THOUGHTS ON TERRA Earlier readers of DeFi Digest will remember our initial primer on Anchor Protocol and the update we published when Anchor introduced the Dynamic Earn Rate. While we attempted to quantify the...

Stablecoins II

FIGURE: FARMER PEPE REKT BY DE-PEGGED ALGO STABLES In the last issue of DeFi Digest, we discussed the need for stablecoins to have utility to maintain their pegs, before diving deep into the different kinds of stables. Now that we have a lay of the (stables) land, we extract essential...

Stablecoins I

Figure: Pepe Meditating to Peg the Universe of DeFi Stablecoins FINDING STABILITY FIGURE: MARKET CAPITALIZATION OF PROMINENT STABLECOINSSource: CoinMetrics. io Stablecoins (‘stables’) are cryptocurrencies that aim to peg their prices to another cryptocurrency, fiat money, or commodities. For the stables primer below, we specifically refer to stablecoins pegged to currencies,...

Anchor Protocol Update - Dynamic Earn Rate

Dynamic Earn Rate NFT Genesis Mint 1/69 ANCHOR INTRODUCES UPDATE TO EARN RATE CALCULATION Two issues ago, I wrote about Anchor Protocol, a dynamic savings platform that leverages money market demand and diversified staking rewards to pay out attractive stablecoin yields. Much has developed since - as they say, one...

Solana's NYC Hacker House

FIGURE: WASSIE[1] NOTE TAKING ON DEFI PANEL DAY 2 This week, we bring you a special edition of DeFi Digest, stemming from the investigative journalism on Solana’s NYC Hacker House by Fundstrat’s in-house wassie, yours truly. Out of the week-long event, I attended the DeFi panels across two days, where...